Reverse Mortgage

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					            What is the first step?
                                                                         Community Action Partnership of
Call CAPSH and ask to speak with a reverse                                Suburban Hennepin (CAPSH)
mortgage counselor.
                                                                           33 Tenth Avenue South, Suite 150
Contact Numbers                                                                  Hopkins, MN 55343
952-697-1302 (metro)                                                            Phone: 952-933-9639
1-877-645-0621 ext. 135 (greater MN)                                              Fax: 952-933-8016
                                                                                    www.capsh.org
        How does the process work?
                                                                          Serving the residents of these
•   Reverse mortgage counselors gather
    information from the homeowner on their
                                                                         suburban Hennepin communities:
                                                                        Bloomington                       Orono
                                                                                                                           Reverse Mortgage
                                                                                          Hassan
    financial situation and help them evaluate                          Brooklyn Park                     Osseo
                                                                                          Hopkins
    their circumstance.                                                 Brooklyn Center   Independence    Plymouth
                                                                        Champlin          Long Lake       Richfield
•   Counselors provide homeowners with                                  Chanhassen        Lorretto        Robbinsdale
                                                                        Corcoran                          Rockford
    information on programs they can use                                                  Maple Grove
                                                                        Crystal           Maple Plain     Rogers
    instead of, or in addition to, a reverse                            Dayton                            St. Anthony
                                                                                          Medicine Lake
    mortgage.                                                           Deephaven         Medina          St. Bonifacius
                                                                        Eden Prairie      Minnetonka      St. Louis Park
•   Counselors explain reverse mortgage                                 Edina             Mtka Beach      Shorewood
                                                                        Excelsior                         Spring Park
    options with examples tailored to individual                        Golden Valley
                                                                                          Minnetrista
                                                                                                          Tonka Bay
                                                                                          Mound
    circumstances.                                                      Greenwood         New Hope        Wayzata
                                                                                                          Woodland
•   Sessions are individual, confidential, and
    available to any Minnesota senior.                                This program is generously funded by:

                                                                                         U.S. Bank
    Why do I need to see a housing
     counselor before applying?
                                                                                     Hennepin County
                                                                               Minnesota Senior Federation                  Money from
                                                                                                                            your home
                                                                           Minnesota Dept. of Human Services
•   The State of Minnesota requires counsel-                                Minnesota Housing Finance Agency
    ing by a HUD-approved housing counseling                          U.S. Dept. of Housing and Urban Development
    agency before you apply for any reverse                           The cities of suburban Hennepin County (and
    mortgage.                                                                           local HRA’s)
                                                                                    Individuals like you
•   Family members are strongly encouraged                                     Minnesota Senior Federation                    For assistance, call
    to attend the counseling session. There is
    no cost or obligation for these services.                               1885 University Avenue West, Suite 190


    This information is available in alternate formats upon request
                                                                                     St. Paul, MN 55104
                                                                                   Phone: 651-645-0261
                                                                                     Fax: 651-641-8969
                                                                                                                           952-697-1302
                                                                                     www.mnseniors.org
        CAPSH is a HUD-approved Housing Counseling Agency.
10/06
Basic Reverse Mortgage Facts:                 Does the lender get the house?                       Are there closing fees?
•   A reverse mortgage is a special type of   •       No, you keep the title to the property.      •   Yes, the homeowner will need to pay
    mortgage that may enable older                    You are still responsible for property           approximately $300 at the time of
    homeowners to remain in their homes               taxes, insurance and repairs.                    application. The charges can be
    for as long as they choose.                                                                        financed and include closing costs,
                                              •       You may sell the home at any time. If            mortgage insurance premiums and
•   It is a loan against home equity that             you decide to sell, the mortgage will be         lender servicing fees.
    provides homeowners with cash                     paid off and you will keep the remaining
    advances according to the plan they               equity.                                      Are there restrictions on how I spend
    select.                                                                                        my equity?
                                              How much can I get?
How is a reverse mortgage different                                                                •   No. A reverse mortgage can be used to
from a home equity loan?                      •       The age of the youngest borrower (your           meet a variety of needs, including
                                                      age or your spouse’s age, if younger),           increasing your monthly income, or
•   With a home equity loan, you must                 your home’s equity, and the interest             paying for property taxes, home
    make regular payments to repay the                rate, will determine how much you can            improvements or other expenses.
    loan.                                             receive.
                                                                                                   Will this loan affect my retirement
•   HUD reverse mortgages require no          •       For a more expensive home, not all of
                                                      the home’s equity will be used to            benefits?
    repayment until the home is sold or the
    last surviving borrower dies or                   determine the maximum mortgage you
                                                                                                   •   No, there is no effect on Medicare,
    permanently moves.                                can obtain.
                                                                                                       Social Security or pensions.
Who is eligible for a HUD reverse             How can I withdraw my equity?                        •   It is possible to receive assistance from
mortgage?                                                                                              public programs like Medical
                                              •       Receive cash at closing.                         Assistance, food stamps or home
•   Borrowers must be at least 62 years of                                                             health care and still utilize a reverse
    age and have the title to the property.   •       Receive monthly cash advances until
                                                                                                       mortgage.
                                                      you sell your home.
•   Homeowners do not need good credit to                                                          Where can I receive reverse
    qualify.                                  •       Receive monthly cash allowances for a
                                                      specified amount of time.                    mortgage counseling?
What types of properties are eligible?        •       Establish a line of credit for withdrawing   •   Counselors provide sessions at the
                                                      as you need it.                                  CAPSH office in Hopkins. Counseling
•   Single-family homes, condos,                                                                       sessions are also offered in St. Paul at
    townhomes, duplexes, triplexes or             •    Have a combination of a line of credit          the Minnesota Senior Federation (Metro
    fourplexes qualify.                                   and monthly cash advances.                   Region) office.
•   Homeowners must either own their          *You are permitted to change plans at any
    home or have a mortgage balance that           time over the life of the loan.*
    can be paid off with the reverse
    mortgage.